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Microsoft (Nasdaq: MSFT) shares are in positive territory
heading into the software giant's second-quarter 2013 report, which
is expected out after markets close Thursday.

Wall Street analysts are looking for Microsoft to report EPS of 75
cents on revenue of $21.53 billion. The number compares with EPS of
78 cents on revs of $20.89 billion reported in the same period last
year.

Microsoft has been hovering near annual lows since just about last
November, only recently mounting a charge higher. Most investors
have been speculating on the potential for Windows 8 given mixed
reviews and, well, high pricing of its Surface tablet. Looking
above, you also see Business and Entertainment revs dropping. Given
the broader adaption of playing video games on mobile devices as
well as Google (Nasdaq: GOOG) making a strong push with its Docs,
these should be two key areas of focus.

On the Surface tablet, Microsoft may disclose sales for the quarter
and the Street is currently at a modest one million units,
according to Citi.

Windows estimates may or may not include Surface numbers. At CES
earlier in January, the company said that about 60 million licenses
for Windows 8 have been sold so far. That number is likely to go
up, although Microsoft might also simply stick to that number for
now. JPMorgan noted that investors should also keep an eye out for
end-channel inventory numbers and demand from OEMs. It would be a
"relief" in inventories are lean.

Shares of Microsoft have trickled just over 5 percent lower since
reporting first-quarter results last October, about double the
S&P's move. The stock is up about 1 percent Thursday.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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